March 22, 2017 / 5:13 PM / a year ago

EMERGING MARKETS-Brazil stocks up as BM&FBovespa, Cetip tie-up wins antitrust approval

    By Bruno Federowski
    SAO PAULO, March 22 (Reuters) - Brazilian stocks rose on
Wednesday as shares of BM&FBovespa SA and Cetip SA rallied after
antitrust watchdog Cade approved a tie-up between the companies.
    Bourse BM&FBovespa SA will create a committee to monitor
product and pricing and allow rival access to proprietary
clearing and settlements platforms, as part of an accord that
grant approval to its takeover of rival clearinghouse Cetip.
    Shares of BM&FBovespa rose as much as 7 percent,
their biggest daily increase in a year, before paring back gains
to around 5 percent. Cetip rose 1.8 percent.
    The rally helped lift Brazil's benchmark Bovespa stock index
 despite persistent concerns that widening corruption
investigations could hamper the approval of fiscal austerity
measures, which drove it to a three-month low on Tuesday.
    President Michel Temer said on Tuesday a planned revamp of
Brazil's costly pension system would only apply to federal
employees, in an apparent attempt to dilute an unpopular reform.

    The Brazilian real was nearly flat, in line with the
moves in other key Latin American currency markets. The Mexican
peso firmed 0.1 percent, while the Colombian peso
weakened 0.2 percent.
    Falling prices of commodities have stalled a rally in
emerging market assets as traders stand pat for further clues
over the pace of U.S. interest rate increases in coming months.
    Remarks by U.S. Federal Reserve officials have fostered
expectations that any policy tightening will be slow, supporting
demand for high-yielding assets.
    Latin American stock indexes and currencies at 1700 GMT:
 Stock indexes                            daily %   YTD %
                                           change  change
 MSCI Emerging Markets            967.00    -0.62   12.85
 MSCI LatAm                      2600.63     0.24   10.84
 Brazil Bovespa                 63475.64     0.79    5.39
 Mexico IPC                     48304.79    -0.59    5.83
 Chile IPSA                      4681.98     0.23   12.78
 Chile IGPA                     23446.56     0.21   13.08
 Argentina MerVal               19578.10     0.21   15.72
 Colombia IGBC                  10008.01     0.26   -1.19
 Venezuela IBC                  36988.71    -1.13   16.66
 Currencies                               daily %   YTD %
                                           change  change
 Brazil real                      3.0853     0.12    5.31
 Mexico peso                     19.0825     0.09    8.71
 Chile peso                        662.7    -0.56    1.21
 Colombia peso                    2923.2    -0.19    2.68
 Peru sol                          3.247     0.09    5.14
 Argentina peso (interbank)      15.5800     0.16    1.89
 Argentina peso (parallel)         16.05     0.50    4.80

 (Reporting by Bruno Federowski; editing by Grant McCool)
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